Published: Friday, May 16, 2014 at 10:18 p.m.

Last Modified: Friday, May 16, 2014 at 10:18 p.m.

WINTER HAVEN | The city's legal bills for the failed Landings development have exceeded original expectations and now eclipse $600,000, according to records obtained by The Ledger.

As of the week of May 15, the city's total bill for legal fees related to a lawsuit over The Landings was $609,478, city records show.

A small fraction of that amount is being reimbursed by the city's insurance policy. A larger percentage of future bills will be covered, said Donna Sheehan, a city spokeswoman.

Just over a year ago, when the city was pondering whether to settle the lawsuit, estimates of potential legal fees were $300,000 to $350,000.

The Landings was a mixed-use development proposed for the city-owned Chain of Lakes Complex. After the first phase of the planned project, which included adding three restaurants on Cypress Gardens Boulevard, things fell apart.

The City Commission cancelled its contract with financier Taylor Pursell, citing his failure to close on one-third of an acre and submit a list of covenants, conditions and restrictions by a May 5, 2012, deadline.

In his lawsuit against the city, Pursell alleged the city's attorney, John Murphy, verbally agreed to extend that deadline when Pursell signed an agreement that allowed a college baseball tournament to be played at the Chain of Lakes Complex before Pursell began the next phase of the development.

Murphy has said he made no such verbal agreement.

Pursell is seeking damages from the city for lost profits and restitution, plus interest. He has said he would seek $20 million, although an amount is not mentioned in the complaint. Attempts to reach Pursell's attorney, John Wesley Frost II, for comment were unsuccessful Friday.

Before the lawsuit was filed, Pursell was in negotiations with the city on a possible settlement. He offered $2,475,000, and the city countered with a $600,000. Pursell rejected that offer.

At the time, the city was deciding on a counter offer in April 2013, Murphy estimated during a commission meeting that the city's legal fees, if a lawsuit were to be filed, would likely cost the city about $300,000 to $350,000.

"I don't know if I said that, but in April 2013, if there were any numbers provided in the commission, it would have been just estimates," Murphy said. "At that time, the lawsuit was not filed."

Mayor Nat Birdsong said at the same April meeting that he thought the city would spend about $600,000 total if the city lost a lawsuit brought on by Pursell.

Commissioner Brad Dantzler was elected last year close to the time the settlements were being negotiated.

"I made it very clear that I wanted to push for a settlement. There are three or four things that I ran on, and that was first and foremost," he said.

Dantzler said the last he had heard, legal fees were greater than $450,000. He added that he didn't remember Murphy estimating the fees to be lower than that and that he knows how much this sort of litigation costs.

"Honestly, that figure doesn't surprise me," he said. "We are spending a lot of money, and (Pursell) is spending a lot of money, and all that money could have gone to something else. I know what these long, drawn-out lawsuits cost."

About $485,000 of the fees have been paid to GrayRobinson, the firm representing the city in the lawsuit. More than $97,000 has been paid to Boswell & Dunlap, Murphy's firm. The rest of the fees cover mediation costs and deposition transcript costs, Sheehan said.

Mark Miller of GrayRobinson is the attorney representing the city. He charges $350 per hour.

Kristie Hatcher-Bolin and Kari Reed, both of Gray Robinson, also have been working on the suit. They charge $250 and $105 per hour respectively.

Miller said his firm is more than halfway through the discovery phase of the litigation. Although he said most cases get settled before going to trial, he would not rule out the possibility that this one would get all the way to trial.

"If these guys would just stop suing us, everyone can stop spending money," he said.

He added that he is confident after collecting a fair amount of evidence, that the city has a winnable case.

The city pays the legal fees whenever an invoice is received, usually monthly, Sheehan said. The most recent bill was paid this week. The city paid GrayRobinson about $37,000 and Boswell & Dunlap more than $10,000.

The city has insurance through the Florida League of Cities, which will help lighten the financial burden the lawsuit is putting on the city.

The city received confirmation that it will be reimbursed for almost $23,000 of the most recent GrayRobinson bill, and it will be reimbursed a percentage of GrayRobinson bills going forward, depending on who performs services, Sheehan said. The insurance will cover $155 per hour for work done by partners, $135 for associates and $75 for paralegal services.

In terms of the financial impact on the city, Finance Director Cal Bowen said the amount spent so far this fiscal year was not budgeted for this fiscal year. The city will be using surplus money to pay the fees, possibly pushing the city below the required 17 percent in reserves.

"If legal fees exceed (what we have in surplus) this year and then the budget comes in right on target, we could dip below it," Bowen said. "That would mean next year I have to put a surplus in the budget to get back to the 17 percent."

The city has not determined how much it will budget for legal fees related to the lawsuit in the upcoming year.

The city already faces a deficit between expected revenue and expected expenses for fiscal year 2015 of more than $800,000, not counting the legal fees the city is expecting to incur next year from this lawsuit.

The next hearing date in the lawsuit is scheduled for 8:30 a.m. Oct. 8 in circuit court in Bartow.

<p>WINTER HAVEN | The city's legal bills for the failed Landings development have exceeded original expectations and now eclipse $600,000, according to records obtained by The Ledger.</p><p>As of the week of May 15, the city's total bill for legal fees related to a lawsuit over The Landings was $609,478, city records show.</p><p>A small fraction of that amount is being reimbursed by the city's insurance policy. A larger percentage of future bills will be covered, said Donna Sheehan, a city spokeswoman.</p><p>Just over a year ago, when the city was pondering whether to settle the lawsuit, estimates of potential legal fees were $300,000 to $350,000.</p><p>The Landings was a mixed-use development proposed for the city-owned Chain of Lakes Complex. After the first phase of the planned project, which included adding three restaurants on Cypress Gardens Boulevard, things fell apart. </p><p>The City Commission cancelled its contract with financier Taylor Pursell, citing his failure to close on one-third of an acre and submit a list of covenants, conditions and restrictions by a May 5, 2012, deadline.</p><p>In his lawsuit against the city, Pursell alleged the city's attorney, John Murphy, verbally agreed to extend that deadline when Pursell signed an agreement that allowed a college baseball tournament to be played at the Chain of Lakes Complex before Pursell began the next phase of the development.</p><p>Murphy has said he made no such verbal agreement.</p><p>Pursell is seeking damages from the city for lost profits and restitution, plus interest. He has said he would seek $20 million, although an amount is not mentioned in the complaint. Attempts to reach Pursell's attorney, John Wesley Frost II, for comment were unsuccessful Friday.</p><p>Before the lawsuit was filed, Pursell was in negotiations with the city on a possible settlement. He offered $2,475,000, and the city countered with a $600,000. Pursell rejected that offer.</p><p>At the time, the city was deciding on a counter offer in April 2013, Murphy estimated during a commission meeting that the city's legal fees, if a lawsuit were to be filed, would likely cost the city about $300,000 to $350,000.</p><p>"I don't know if I said that, but in April 2013, if there were any numbers provided in the commission, it would have been just estimates," Murphy said. "At that time, the lawsuit was not filed."</p><p>Mayor Nat Birdsong said at the same April meeting that he thought the city would spend about $600,000 total if the city lost a lawsuit brought on by Pursell.</p><p>Commissioner Brad Dantzler was elected last year close to the time the settlements were being negotiated.</p><p>"I made it very clear that I wanted to push for a settlement. There are three or four things that I ran on, and that was first and foremost," he said. </p><p>Dantzler said the last he had heard, legal fees were greater than $450,000. He added that he didn't remember Murphy estimating the fees to be lower than that and that he knows how much this sort of litigation costs.</p><p>"Honestly, that figure doesn't surprise me," he said. "We are spending a lot of money, and (Pursell) is spending a lot of money, and all that money could have gone to something else. I know what these long, drawn-out lawsuits cost."</p><p>About $485,000 of the fees have been paid to GrayRobinson, the firm representing the city in the lawsuit. More than $97,000 has been paid to Boswell & Dunlap, Murphy's firm. The rest of the fees cover mediation costs and deposition transcript costs, Sheehan said.</p><p>Mark Miller of GrayRobinson is the attorney representing the city. He charges $350 per hour.</p><p>Kristie Hatcher-Bolin and Kari Reed, both of Gray Robinson, also have been working on the suit. They charge $250 and $105 per hour respectively.</p><p>Miller said his firm is more than halfway through the discovery phase of the litigation. Although he said most cases get settled before going to trial, he would not rule out the possibility that this one would get all the way to trial.</p><p>"If these guys would just stop suing us, everyone can stop spending money," he said.</p><p>He added that he is confident after collecting a fair amount of evidence, that the city has a winnable case.</p><p>The city pays the legal fees whenever an invoice is received, usually monthly, Sheehan said. The most recent bill was paid this week. The city paid GrayRobinson about $37,000 and Boswell & Dunlap more than $10,000.</p><p>The city has insurance through the Florida League of Cities, which will help lighten the financial burden the lawsuit is putting on the city.</p><p>The city received confirmation that it will be reimbursed for almost $23,000 of the most recent GrayRobinson bill, and it will be reimbursed a percentage of GrayRobinson bills going forward, depending on who performs services, Sheehan said. The insurance will cover $155 per hour for work done by partners, $135 for associates and $75 for paralegal services.</p><p>In terms of the financial impact on the city, Finance Director Cal Bowen said the amount spent so far this fiscal year was not budgeted for this fiscal year. The city will be using surplus money to pay the fees, possibly pushing the city below the required 17 percent in reserves.</p><p>"If legal fees exceed (what we have in surplus) this year and then the budget comes in right on target, we could dip below it," Bowen said. "That would mean next year I have to put a surplus in the budget to get back to the 17 percent."</p><p>The city has not determined how much it will budget for legal fees related to the lawsuit in the upcoming year.</p><p>The city already faces a deficit between expected revenue and expected expenses for fiscal year 2015 of more than $800,000, not counting the legal fees the city is expecting to incur next year from this lawsuit. </p><p>The next hearing date in the lawsuit is scheduled for 8:30 a.m. Oct. 8 in circuit court in Bartow.</p>